WHEREAS, the United States Congress has passed the Philanthropy Protection Act of 1995; and

WHEREAS , the Philanthropy Protection Act of 1995 provides for the pre-emption of regulation of securities offerings by charitable income funds under state laws; and

WHEREAS, the Philanthropy Protection Act of 1995 provides that any state desiring to retain its regulation of securities offerings by charitable income funds shall enact a statute that specifically states such desire; and

WHEREAS, intending that Tennessee continue to provide for such regulation of securities offerings, finding that it is necessary for the protection of investors in Tennessee; now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. This Act shall exempt the State of Tennessee from the provisions of the Philanthropy Protection Act of 1995, Public Law 104-62, pursuant to Section 6(c) of that Act.

SECTION 2. Tennessee Code Annotated, Section 48-2-124, is hereby amended by adding as a new subsection (h) the following:

(h) Pursuant to Section 6(c) of the Federal Philanthropy Protection Act of 1995, Public Law 104-62, the provisions of this part shall not be preempted.

SECTION 3. This act shall become effective upon becoming law, the public welfare requiring it.